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What's Wrong with ACFTA (ASEAN-China Free Trade Agreement)
Start from January 1, 2009 in Indonesia applies ACFTA. ACFTA stands for ASEAN-China Free Trade Agreement. This is kind of trade agreement between the countries around Southeast Asia and China. What is the effect for my country? A lot of product from ASEAN and China-free entry into my country (Indonesia). Many public opinion response to this agreement. There is pro and contra opinion.
The pro opinion from the people said that they can get product with the cheaper price. Actually many products which come to my country competing with local products which exist first. There are different price between two product, local and ACFTA, like Chinese product. It can be look from many product which flooded in my country like mobile phone, laptop, lamp, housewares, electronic equipment. Because there are many people with medium level and below for income in my country. They are very welcome to these product, and receive their product.
The contra opinion from the people said that they aren’t ready with many products from Southeast Asia and China come to my country. They confuse in choosing the various product, which product they can trust.
Who was felt the impact of the ACFTA
Entrepreneurs/businessman who will felt the impact of this agreement. Because the businessman who have the company run the wheel of economy in my country. They should revitalize their business, including the employee. Do they have to panic? Yes of course. Especially textiles and cosmetics sector. Because this kind of threat for them. Maybe many company collapsed because losing to compete with products from ACFTA. Another sector which felt the impact is food and drink company. Because many of the raw materials used are imported from other country. And because this is world agreement, they can’t deny it.
The simple case is ACFTA give the opportunity for China to sell cosmetic products in my country. China's product prices will threaten Indonesian businessmen products. And the biggest threat actually comes from the Indonesian consumer mistrust to buy domestic products.
How to anticipate the ACFTA
- Yesterday I watched talk show in my television about this topic. The economic expert said that there is maybe some delay for next 6 months. So, many company could prepare anything to fight ACFTA. But it difficult for agriculture, manufacturer and mining sector, because they will ready for next 5 years.
- There is a national standard for quality . All the product who come to my country have to pass all the exam to meet national quality standards. Including permits (legally permits) and quality. For food, drink and cosmetic must have a health certificate of the world (safe use). Because consumers could impaired for the difference in quality. Like products which containing harmful ingredients for health, such as mercury. Such cases have appeared in cosmetic products, food and toys.
- Showing unique product features as product competitiveness ACFTA. Many products produced in my country, like Batik, statue, handy crafts, furniture with international standard. And all these product have good quality
Batik is one of indonesia product
I am not economic expert. But I like to follow the economic news from television, internet and newspaper. So I can give a little opinion about this and I hope it benefit for my country as a solution. I know I am too little, And I can't show my power to my country. I hope by this writing I can share something little become useful for us.
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The threat existence of cheap mobile phones become more frequent because of ACFTA (ASEAN-China Free Trade Agreement). Many China's mobile phone come to Indonesia. Mobile phone is not luxury product right now, it can be seen by many people have this communication product. The trend now is...........